Taxpayers at the Ho Chi Minh City Tax Department in District 3 earlier this week

A proposed delay in the Personal Income Tax Law, due to take effect next week, is unlikely to be approved by the National Assembly, a senior official has said.

“Even when the proposal is approved by the Standing Committee, we still cannot decide on any change before the law’s start date.” Dan said.

The Personal Income Tax Law has some articles relating to the Corporate Tax Law, which will also be introduced on January 1 and will be affected by a delay.

Minister of Finance Vu Van Ninh said the issue would be considered by the Standing Committee tomorrow.

The government was asked to delay the introduction of the Personal Income Tax Law to stimulate investment and consumer spending in the face of continued economic difficulties.

Earlier this week, Le Quoc Dung, deputy head of the National Assembly’s Economic Committee, said the Ministry of Finance had prepared two options for the implementation of the law – delaying its introduction to July 1 next year or implementing the law, as originally planned, on January 1 but with exemptions for some sectors.

“We will have time to check and make the law more effective if we delay its implementation,” Dung said.

Many citizens also voiced their unhappiness and confusion over the clauses relating to deductions for dependants. Critics said the clauses defining dependants were too complicated.

Reported by Xuan Toan